Lamar’s auto stock plan defeated

The Associated Press reports out of Washington that Lamar Alexander’s plan to give taxpayers share certificates in GM and Chrysler was defeated. The bill also barred giving the car companies more money from the Wall Street bailout fund.

WASHINGTON (AP) – The Senate rejected a plan Wednesday to give taxpayers stock certificates for their share of the government’s ownership stake in General Motors Co. and Chrysler Group LLC.

The Senate defeated the plan, sought by Sen. Lamar Alexander, R-Tenn., by a 38-59 vote. Alexander’s proposal also would have blocked the government from using any more money from last year’s Wall Street bailout to help out the car companies.

“Give the stock the government owns in General Motors and Chrysler to the 120 million Americans who paid taxes on April 15,” Alexander said.

Since bailing out the companies late last year, the government has provided about $50 billion to General Motors and about $15.5 billion to Chrysler, along with additional federal aid to the automakers’ financing arms and suppliers. The U.S. government owns 61 percent of the new General Motors and 8 percent of Chrysler.

“If they paid for it, they should own it,” Alexander sa id.

But Sen. Dick Durbin, D-Ill., said Alexander’s amendment would dilute the power of the government to deal with the companies, especially GM.

“Is this really the best outcome to make sure that this company and its workers and its retiree rights survive?” Durbin said.

The Obama administration has said it intends to sell its shares in the companies as soon as possible but it has declined to offer a timeline to avoid undercutting any potential profits for taxpayers.

New versions of both GM and Chrysler recently emerged from short stays in government-funded bankruptcy protection, cleansed of old debt and burdensome contracts.

Alexander offered the measure to a bill funding the Energy Department and water projects.